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AGREEMENT

in the form of an exchange of letters between the European Eocnomic Community and the Republic of Austria adapting the Agreement of 20 September 1977 concerning certain types of cheeses negotiated under Article XXVII of GATT

A. Letter from the Republic of Austria

Sir,

I refer to the Agreement between Austria and the European Economic Community of 20 September 1977 concerning certain types of cheese negotiated under Article XXVIII of GATT and to the fact that, due to the entry into force of the International Convention on the Harmonized Commodity Description and Coding System, it is necessary to adapt the Agreement to the Customs Tariff which came into force in Austria on 1 January 1988.

In this connection I would like to draw your attention to the following:

1. The Austrian concessions referred to in paragraph 1 (a) of the Agreement of 20 September 1977 and set out in Annex IB to the Agreement have as a result of the transposition of Austria's conventional tariffs under the General Agreement on Tariffs and Trade (GATT) been transferred as they stand to code 0406 of the new customs tariff. These bound tariffs are contained in Schedule XXXII-Austria, annexed to the Second Geneva Protocol (1987) to the General Agreement on Tariffs and Trade (GATT), in force since 1 January 1988, under the following subheadings

0406 20 A 1 a, 0406 20 A 2 a, 0406 20 B 1 a,

0406 30 B 1 a,

0406 40 B 1 a, 0406 40 B 1 b, 0406 40 B 2 a,

0406 90 A 1 a, 0406 90 A 1 b, 0406 90 A 1 c, 0406 90 A 2 a,

0406 90 A 2 b, 0406 90 A 2 c,

0406 90 B 1 a, 0406 90 B 1 b and 0406 90 B 2 a.

It is still the case that these conventional tariffs apply only on production of recognized quality and origin certificates. It would appear unnecessary therefore top conclude an additional arrangement adapting the previous customs nomenclature, since the new version of GATT Schedule XXXII-Austria fully safeguards the contractual rights of the European Economic Community as regards these types of cheese.

2. In place of the rules for particular types of cheese referred to in paragraph 1 (b) of, and Annex II to, the Agreement of 20 September 1977, the arrangements of the Agreement of 31 July 1987 for a concerted discipline between the Republic of Austria and the European Economic Community concerning reciprocal trade in cheese currently apply. The schedules contained in the Agreement of 31 July 1987, which refer to the customs tariff, were changed by Decision No 6/88 of the Joint Committee of 16 December 1988 amending the EEC-Austria Free Trade Agreement and some other Agreements concluded in the same context between the European Economic Community and the Republic of Austria.

3. Paragraph 1 (c) of the Agreement of 20 September 1977 is hereby replaced by the following text adapted to the nomenclature of the Harmonized System, while maintaining the contractual position concerning trade in cheese with the European Economic Community:

'(c) for imports into Austria of the following types of cheese of Community origin made from cow's milk, with the exception of types of cheese covered by the Agreement of 31 July 1987 for reciprocal trade in cheese, Austria shall apply the following import charges provided that the cheese is accompanied by an approved certificate of quality and origin:

1.2.3 // // // // Heading/subheading of the Austrian customs tariff // Description of goods // Import charge in schillings per 100 kg // // // // 0406 // // // ex 10 A 1 b ex 10 A 2 b ex 20 A 1 b ex 20 A 1 c ex 20 A 2 b ex 20 A 2 c ex 90 A 1 d ex 90 A 1 e ex 90 A 1 f ex 90 A 2 d ex 90 A 2 e ex 90 A 2 f // Cheese of a water content calculated on the non-fatty matter exceeding 62 % by weight, including grated or powdered cheese // 500' // // //

4. This exchange of letters shall come into force as soon as the Contracting Parties have informed each other of the completion of the necessary procedures for entry into force. Its substantive provisions shall apply from 1 January 1988.

I should be obliged if would confirm that you are in agreement with the above.

Please accept, Sir, the assurance of my highest consideration.

For the

Government of the Republic of Austria

B. Letter from the Community

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'I refer to the Agreement between Austria and the European Economic Community of 20 September 1977 concerning certain types of cheese negotiated under Article XXVIII of GATT and to the fact that, due to the entry into force of the International Convention on the Harmonized Commodity Description and Coding System, it is necessary to adapt the Agreement to the Customs Tariff which came into force in Austria on 1 January 1988.

In this connection I would like to draw your attention to the following:

1. The Austrian concessions referred to in paragraph 1 (a) of the Agreement of 20 September 1977 and set out in Annex IB to the Agreement have as a result of the transposition of Austria's conventional tariffs under the General Agreement on Tariffs and Trade (GATT) been transferred as they stand to code 0406 of the new customs tariff. These bound tariffs are contained in Schedule XXXII-Austria, annexed to the Second Geneva Protocol (1987) to the General Agreement on Tariffs and Trade (GATT), in force since 1 January 1988, under the following subheadings

0406 20 A 1 a, 0406 20 A 2 a, 0406 20 B 1 a,

0406 30 B 1 a,

0406 40 B 1 a, 0406 40 B 1 b, 0406 40 B 2 a,

0406 90 A 1 a, 0406 90 A 1 b, 0406 90 A 1 c, 0406 90 A 2 a,

0406 90 A 2 b, 0406 90 A 2 c,

0406 90 B 1 a, 0406 90 B 1 b and 0406 90 B 2 a.

It is still the case that these conventional tariffs apply only on production of recognized quality and origin certificates. It would appear unnecessary therefore top conclude an additional arrangement adapting the previous customs nomenclature, since the new version of GATT Schedule XXXII-Austria fully safeguards the contractual rights of the European Economic Community as regards these types of cheese.

2. In place of the rules for particular types of cheese referred to in paragraph 1 (b) of, and Annex II to, the Agreement of 20 September 1977, the arrangements of the Agreement of 31 July 1987 for a concerted discipline between the Republic of Austria and the European Economic Community concerning reciprocal trade in cheese currently apply. The schedules contained in the Agreement of 31 July 1987, which refer to the customs tariff, were changed by Decision No 6/88 of the Joint Committee of 16 December 1988 amending the EEC-Austria Free Trade Agreement and some other Agreements concluded in the same context between the European Economic Community and the Republic of Austria.

3. Paragraph 1 (c) of the Agreement of 20 September 1977 is hereby replaced by the following text adapted to the nomenclature of the Harmonized System, while maintaining the contractual position concerning trade in cheese with the European Economic Community:

''(c) for imports into Austria of the following types of cheese of Community origin made from cow's milk, with the exception of types of cheese covered by the Agreement of 31 July 1987 for reciprocal trade in cheese, Austria shall apply the following import charges provided that the cheese is accompanied by an approved certificate of quality and origin:

1.2.3 // // // // Heading/subheading of the Austrian customs tariff // Description of goods // Import charge in schillings per 100 kg // // // // 0406 // // // ex 10 A 1 b ex 10 A 2 b ex 20 A 1 b ex 20 A 1 c ex 20 A 2 b ex 20 A 2 c ex 90 A 1 d ex 90 A 1 e ex 90 A 1 f ex 90 A 2 d ex 90 A 2 e ex 90 A 2 f // Cheese of a water content calculated on the non-fatty matter exceeding 62 % by weight, including grated or powdered cheese // 500'' // // //

4. This exchange of letters shall come into force as soon as the Contracting Parties have informed each other of the completion of the necessary procedures for entry into force. Its substantive provisions shall apply from 1 January 1988.

I should be obliged if would confirm that you are in agreement with the above.'

I have the honour to confirm that the European Economic Community is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of

the Council of the European Communities